National Oilwell Board Okays Distribution Business Spin-Off

(RTTNews) - National Oilwell Varco Inc (NOV), a maker of equipment used in oil and gas drilling, said Thursday its board has given final approval for the spin-off of its distribution business. The resulting company will be known as NOW Inc and will be based in Houston.

The separation will be completed by way of a pro rata distribution of all of the outstanding shares of NOW common stock to holders of NOV common stock. This distribution is expected to occur after market close on May 30 to NOV stockholders of record as of the close of business on May 22.

On the Distribution Date, each NOV stockholder as of the Record Date will receive one share of NOW common stock for every four shares of NOV common stock held at the close of business on the Record Date.

Following the distribution of NOW common stock, NOW will be an independent, publicly traded company, and NOV will retain no ownership interest in NOW. NOW expects to receive approval soon for the listing of its common stock on the New York Stock Exchange under the symbol DNOW.

NOV expects a "when-issued" public trading market for NOW common stock will commence on or about May 20, 2014 under the symbol DNOW WI and will continue through the Distribution Date.

NOV also anticipates that "regular way" trading of NOW common stock will begin on the first trading day following the Distribution Date.